M-Wallets To Replace Cash By 2021: CBA

New research from CommBank shows mobile wallets are likely to replace physical wallets in Australia by 2021.

The majority (73 per cent) of Australians believe they will be ditching their wallets for mobile wallets on their smartphones in the next 6-7 years.

Most consumers also believe they will be giving cash and card payments the slip completely, as innovations like Tap & Pay payments drive the m-wallet revolution. Half of consumers surveyed agree the majority of payments will be made via a mobile wallet in the near future, for everything from the bus to buying a coffee.

However, almost four out of 5 believe there will always be a need to have some cash on them.

But its not just making payments - consumers believe loyalty schemes, coupons, storing receipts, tickets and getting around on public transport will be features of their mobile wallets, in the future.

"While there may always be a need for different payment methods, such as cash for emergencies and cards for travel, it's clear the mobile wallet is set to become a part of many Australians' everyday lives," says Angus Sullivan, Executive General Manager Cards, Payments, Commonwealth Bank.

"As a nation, we've been at the forefront of the contactless payments revolution and Australians appear keen to lead the world into the new era of the mobile wallet."

For most Australians, trust and confidence in the security of m-wallets will be key to adoption.

According to the survey, banks and financial institutions are the most trusted providers of mobile wallets (44 per cent), ahead of the government (16 per cent), technology companies (14 per cent), such as Google and Apple, and retail stores (10 per cent).